Zhitong Financial APP News, Kerry Construction (00683) announced that Kerry Construction subsidiary, Kerry Holdings subsidiary An and Changchun subsidiary, collectively referred to as the seller, entered into the first agreement with the buyer (Shenzhen Fancy year Real Estate Group Co., Ltd.) for the sale of the entire interest in Chengdu Company I on April 29th, 2021 at a total consideration of RMB 8.896 million (the same below). And Kerry Construction subsidiary, Kerry Holdings subsidiary B and Changchun subsidiary, collectively referred to as the Vendor, entered into a second agreement with the Purchaser for the sale of the entire interest in II of Chengdu Company for a total consideration of $38.124 million.

Upon completion of these transactions, the Group will no longer hold any interest in Chengdu Company I and Chengdu Company II, and the respective financial statements of Chengdu Company I and Chengdu Company II will no longer be incorporated into the Group's financial statements.

It is reported that Chengdu Company I is 55%, 20% and 25% owned by Kerry Construction subsidiary, Kerry Holdings subsidiary An and Changchun subsidiary respectively, and Chengdu Company II is owned by Kerry Construction subsidiary, Kerry Holdings subsidiary B and Changchun subsidiary respectively.

Chengdu Company I and Chengdu Company II are mainly engaged in property development and sales, and currently have an unsold residential unit and parking space in Yasongju, the capital of Chengdu, China, the announcement said. These transactions enable the Group to realize the value of non-core properties and recover capital to achieve higher growth prospects / investments.

The net proceeds from these transactions received by the Group under the first Agreement and the second Agreement are estimated to be $4.9 million and $20.9 million respectively, which will be used as the general working capital of the Group. The Directors believe that cashing out the investment will enhance the Group's resource allocation strategy and supplement its strategic and operational flexibility.

Based on the estimated consideration to be received by the Group, the Group's after-tax profits from these transactions under the first and second agreements are estimated to be HK $6.5 million and HK $16.5 million respectively.